Thomas H Lee to buy New Century Hospice: sources

Thomas H Lee Partners LP is investing in New Century Hospice, according to two sources and a regulatory filing.

Cain Brothers, a healthcare-focused investment bank, is running the auction of New Century. THL is acquiring New Century, said the two sources, a banking and a private equity executive. It’s unclear how big THL’s stake will be or how much the firm is paying.

Dallas-based New Century provides care for patients in their homes and in long-term care facilities. The company was expected to produce $25 million in revenue in 2012, according to press reports from that time.

New Century operates in Colorado, Georgia, Louisiana, Oklahoma, Texas and Virginia.

In 2010, New Century raised $20 million in Series A financing led by Scale Venture Partners and Petra Capital Partners. The company acquired Legacy Hospice of Colorado Springs in March.

Thomas H Lee is using its seventh flagship fund to invest in New Century, according to a January 6 FTC filing. THL targets sectors including business and financial services, consumer and healthcare, as well as media and information services. The buyout shop typically invests in companies with enterprise values between $250 million and $2.5 billion, its website said.

THL last year acquired Curo Health Services in a deal reportedly valued at $730 million. THL also owns inVentiv Health and Intermedix Corp.

THL has been fundraising for Thomas H Lee Equity Fund VII, which is slated for a final close in the Spring, Buyouts has reported. Fund VII is seeking $3 billion, far below the $8.1 billion THL collected for its sixth fund in 2006, Buyouts said.

Fund VI netted an 8.1 percent net IRR and 1.5x investment multiple as of June 30, according to the California Public Employees’ Retirement System, an investor in the fund.

THL declined comment. New Century, Cain Brothers, Scale Venture Partners and Petra Capital Partners could not immediately be reached for comment.

Action Item: See the FTC filing for the sale:

Photo of hospice care courtesy of Shutterstock